'We have West Coast capitalism, not US holdings': The challenges facing global investors

'We have West Coast capitalism, not US holdings.'

Annabelle Williams investigates how changing company loyalties and the business connections between city states are impacting investors.

Twenty years ago, fund managers spoke about national economies and companies, while their portfolios were far more regionally focused. James Anderson, co-manager of the Scottish Mortgage trust, estimates around two-thirds of a portfolio's assets were in businesses local to their country of operations. The make-up of global indices at the time reflected this positioning. For example, in 2002, companies in the MSCI World index made just 11% of their sales in developing markets, and the rest of their revenue was derived from developed nations. But over the past decade, globalisation has ra...